The Martin Currie Asia Pacific Urban Trends Income strategy aims to provide for investors looking for a consistent and growing income stream.
The strategy invests in a diversified portfolio of quality listed Real Asset securities including REITs, infrastructure and utilities, from developed and emerging Asia Pacific ex Japan countries.
Our approach is premised on the philosophy that the performance of Real Assets is driven by their unique leverage to the key demographic themes of population and urbanisation growth.
Our key thesis is that as urban population grows, so too will demand for Real Assets to service everyday needs. With a growing demand, coupled with the nondiscretionary nature of the services provided, Real Assets often have strong pricing power, proven cash flows, and the ability to grow income distributions regardless of the economic cycle. Given these attractive characteristics, real assets are generally less volatile than the wider equity market or sector-specific strategies and have a lower correlation with the returns of other asset classes.
While the global megatrend of urban population growth is enduring and is expected to hold well into the future, not all countries and cities are growing, and some are in fact going backwards. Our approach is to invest where Real Asset demand growth is underpinned by a naturally growing customer base, avoiding low growth regions like Japan where population declines become an investment headwind. As such we focus on select target countries, regions and cities in the Asia Pacific (ex Japan) region with the most attractive demographic growth.
|Portfolio characteristics||Asia Pacific Urban Trends Income|
|Asset Class||Listed Real Assets|
|Investable Universe||Asia Pacific ex Japan listed Real Asset securities|
No formal benchmark|
A blended index comprised of 50% MSCI AC Asia Pacific Ex Japan/UTILITIES (Net), 50% MSCI AC Asia Pacific Ex Japan Equity REITS (Net) is used for performance comparison purposes
|Market capitalisation||All cap|
|Country limit||At least 50% of the portfolio must be invested outside of Australia/New Zealand.|
|Sector limit||Absolute 60% to REITs and property related securities|
|Security limit||Absolute 10%|
|Number of stocks||Typically 40|
|Portfolio turnover||Typically 25% p.a.|
|Forecast tracking error||We do not target tracking error but total risk outcome is typically 90% of the market.|
|Inception||28 June 2016|
"As urban populations grow, the demand for the essential services that listed Real Assets provide rises, and helps to grow dividends irrespective of the business cycle."